World stocks held near two-month peaks on Friday, while oil prices were set for a fourth week of declines in a boost for the inflation outlook and government bond markets that are increasingly confident interest rate cuts are coming next year. The dollar slid 1% against the yen and was set for one of its steepest weekly falls against other major currencies this year as market rate expectations shift.
Oil prices attempted to bounce back after sliding almost 5% on Thursday to four-month lows in a move that was blamed on economic and supply concerns, though technical selling likely played a part when the $80 bulwark broke. Brent was last up 1% at $78.23 a barrel, but still down almost 20% from the $97.69 top hit in late September. U.S. crude also rallied 1% to $73.